Articles from Kroll Bond Rating Agency, LLC

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Angel Oak Mortgage Trust 2026-6 (AOMT 2026-6), a $250.6 million non-prime RMBS transaction. The underlying collateral, comprised of 381 residential mortgages, and includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” All the loans are either classified as non-qualified mortgages (62.8%) or exempt (37.2%) from the Ability-to-Repay/Qualified Mortgage rule due to being originated for non-consumer loan purposes. Angel Oak Mortgage Solutions originated 65.0% of the pool, with no other originator comprising over 10% of the collateral.

KBRA assigns a rating of BBB with a Stable Outlook to the $500 million senior unsecured notes issued by Cantor Fitzgerald, L.P. (“Cantor”, "CFLP", or “the firm”) with a final maturity date of October 15, 2029. The proceeds will be used to refinance existing senior unsecured debt of $350 million that was scheduled to mature on April 14, 2027 and for general corporate purposes.

KBRA releases research examining the performance of 2012-16 vintage commercial mortgage-backed securities (CMBS) conduit transactions as they approach the end of their life cycles, with a focus on transaction tail periods, principal paydowns and losses, and interest payment disruptions as the remaining underlying loans mature and undergo workouts. CMBS conduit securitizations issued from 2012 through 2016 were predominantly collateralized by 10-year loans, most of which had prepayment protections that limited early refinancing. Almost all of the underlying loans have since reached their scheduled maturity dates or will by year-end, providing an opportunity to assess the performance of these transactions as they season beyond 10 years. While most of these securitizations remain outstanding, a substantial portion of their original collateral has paid down. Tail risk, adverse selection, potential maturity defaults, and variability in cash flow distributions are long-recognized behaviors of conduit CMBS and are considered in credit ratings at issuance. The typically long-dated rated final distribution dates of certificates also recognize the potential for loan extensions and protracted asset resolutions beyond original loan maturities

KBRA assigns preliminary ratings to 60 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-S1 (SEMT 2026-S1), a prime RMBS transaction collateralized by 699 mostly seasoned fixed-rate residential mortgage loans with an aggregate scheduled principal balance of approximately $341.7 million. 100% of the pool has been designated as a Qualified Mortgage (QM).

KBRA releases the September 2026 issue of CMBS Trend Watch.

KBRA assigns preliminary ratings to 13 classes of mortgage-backed notes from OBX 2026-NQM16 Trust, a $750.1 million non-prime RMBS transaction. The underlying collateral, comprising 1,446 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 93.6% and 6.4% of the pool, respectively. All of the loans are either classified as non-qualified mortgages (Non-QM; 32.9%) or exempt (53.9%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.

KBRA assigns preliminary ratings to ten classes of mortgage-backed certificates from Aspire Mortgage Trust 2026-6 (SPIRE 2026-6), a $399.3 million non-prime RMBS transaction. The underlying collateral, comprising 801 residential mortgages, is characterized by fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs), which make up 98.7% and 1.3% of the pool, respectively. The loans are classified as Qualified Mortgages – Safe Harbor (APOR) (44.4%), Qualified Mortgages – Rebuttable Presumption (APOR) (1.3%), Non-Qualified Mortgages (11.1%), or exempt (43.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to origination for non-consumer loan purposes.

KBRA releases research examining current trends across the structured credit landscape. U.S. collateralized loan obligation (CLO) issuance regained momentum over the summer despite a challenging macroeconomic backdrop. In recent months, CLO liability spreads have remained relatively tight amid persistent investor demand and manageable credit conditions. These conditions supported issuance, with volumes over the first two months of 3Q 2026 nearly surpassing the total recorded in 2Q, bringing year-to-date (YTD) new issuance activity in the U.S. broadly syndicated loan (BSL) and middle market (MM) to more than $111 billion as of August 2026. Still, total issuance remains approximately 20% below last year’s pace, mainly due to weak collateral formation and more difficult arbitrage conditions for BSL CLOs. Meanwhile, YTD 2026 MM and private credit (PC) CLO activity has kept pace with the prior year despite modest widening in MM CLO AAA spreads. In Europe, BSL volumes have largely kept pace with 2025, reaching nearly EUR40 billion in YTD issuance. European MM CLO volume surpassed EUR1 billion for the first time, underscoring the continued development of the region’s PC CLO market.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM12 Mortgage Trust, an RMBS transaction issued under the CROSS shelf, where Hildene-CCC Loan Acquisition II, LLC and CrossCountry Capital are the co-sponsors. This $663.3 million transaction is collateralized by a pool of 1,361 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (77.7%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 86.4% and 13.6% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 58.1%) or exempt (41.1%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA releases research on the proved, developed, and producing (PDP) oil and gas ABS market. This market has grown considerably in recent years, becoming an established source of financing alongside traditional reserve-based lending (RBL). Securitization can provide issuers with longer-term committed financing, access to a broader institutional investor base, and a potential source of acquisition financing. The market has also broadened across operators, producing regions, commodity mixes, well seasoning profiles, and transaction structures. This evolution is evident in the KBRA-rated universe, where year-to-date (YTD) issuance reached approximately $6 billion across eight transactions in 2026, with nearly all issuance coming from repeat issuers. KBRA-rated transactions now span approximately 10 operators across eight basins.

KBRA assigns a preliminary rating to one series of notes issued by MP 2023 LLC, Series 2026-1, an inland marine vessel lease ABS transaction. MP 2023 LLC, Series 2026-1 is Maritime Partners’ third ABS securitization comprised entirely of inland marine vessels. The transaction structure is a master trust, and as such, the indenture permits the issuance of additional classes and series of notes. The Series 2026-1 Notes represents the Issuer’s third issuance from MP 2023 LLC following the issuance of the Series 2023-1 Notes which closed on May 19, 2023 and the Series 2025-1 Notes which closed on November 25, 2025.

KBRA assigns preliminary ratings to 68 classes of mortgage-backed certificates from EFMT 2026-CNF1. EFMT 2026-CNF1 is a $294.1 million RMBS transaction, as of the cut-off date, sponsored by EFMT Sponsor LLC. The pool is secured entirely of first lien, owner-occupied (OO) properties underwritten to agency guidelines. The underlying pool is seasoned approximately two months and comprises 549 loans. All of the loans are originated and serviced by PennyMac Loan Services, LLC.

KBRA assigns preliminary ratings to 87 classes of mortgage pass-through notes from OBX 2026-J3 Trust, a $391.5 million prime RMBS transaction. The underlying collateral, comprising 319 fixed-rate, fully amortizing loans, is characterized by moderate borrower equity, as evidenced by the WA original LTV of 71.9%, and has a WA original credit score of 786.

KBRA assigns preliminary ratings to the Series 2026-1 Class A-1-L, Class A-1-V, Class A-2, and Class B Notes, and the Series 2026-2 Class A-2, and Class B Notes (together, the Series 2026-1/2 Notes) from HW Bulk Issuer LLC, (the Issuer), a communications infrastructure securitization.

KBRA assigns preliminary ratings to 20 classes of mortgage-backed notes from RCKT Mortgage Trust 2026-CES10 (RCKT 2026-CES10).

KBRA has assigned a long-term rating of AAA to the Los Angeles Unified School District (County of Los Angeles, California) General Obligation Bonds, Series QRRUS (2026) (Dedicated Unlimited Ad Valorem Property Tax Bonds). Concurrently, KBRA has affirmed the long-term rating of AAA on outstanding parity General Obligation Bonds of the District. The Outlook is Stable.

KBRA assigns preliminary ratings to the Series 2026-1, Class A-2 Notes, Class A-1-L Notes, Class B Notes and Class C Notes (the Series 2026-1 Notes) from GW Issuer, LLC (the Issuer), a communications infrastructure securitization.

KBRA assigns a long-term rating of AA+ to the Borough of North Slope, Alaska General Obligation Bonds, Series 2026. KBRA additionally affirms the long-term rating of AA+ for the Borough's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to three class of notes from Databank Issuer, LLC and Databank Co-Issuer, LLC Series 2026-2, Series 2026-3, and Series 2026-4 (together, Series 2026-2/3/4), a colocation data center ABS transaction. The transaction represents the sixth ABS issuance issued by DataBank Issuer, LLC and DataBank Co-Issuer, LLC. All series share in the same collateral pool, which will be increased with the additional collateral on the closing date of DataBank 2026-2/3/4. KBRA’s rating analysis incorporates all prior debt issuance of the Co-Issuers. In conjunction with the issuance of the Series 2026-2/3/4 Notes, the Series 2021-2 Notes are expected to be repaid at which time KBRA will withdraw the ratings. At the same time, KBRA also anticipates affirming the ratings on the outstanding Series 2021-1 Notes, Series 2023-1 Notes, Series 2024-1 Notes, and Series 2026-1 Notes with the issuance of Series 2026-2/3/4 Notes (collectively, with the Series 2026-2/3/4 Notes, the Notes).

KBRA assigns preliminary ratings to 72 classes of mortgage-backed notes from AHMC 2026-CNF2 Trust. The transaction is sponsored and serviced by AmeriHome Mortgage Company, LLC (AmeriHome) and is comprised of 741 residential mortgage loans with an aggregate unpaid principal balance (UPB) of approximately $391.4 million as of the October 1, 2026 cut-off date. The underlying collateral consists primarily of 30-year fixed-rate qualified mortgages (FRMs).

KBRA assigns preliminary ratings to 106 classes of mortgage pass-through certificates from Sequoia Mortgage Trust 2026-13 (SEMT 2026-13), a $622.4 million prime RMBS transaction. The pool is comprised of 548 first-lien, fully amortizing fixed rate mortgages with mostly 30-year maturity terms. The collateral is characterized by a weighted average (WA) original credit score of 772 and moderate borrower equity, with a WA original LTV and WA original CLTV of 66.3% and 66.3%.

KBRA assigns a long-term rating of AAA to the Commonwealth of Massachusetts Dedicated Transportation Revenue Bonds, 2026 Series A. KBRA additionally assigns a long-term rating of AAA to the Commonwealth's Federal Highway Grant Anticipation Notes, 2026 Series A. The rating Outlook for each obligation is Stable.

KBRA assigns preliminary ratings to TLE WBS Issuer, LLC (the Issuer), Series 2026-1 (TLE 2026-1), a whole business securitization (WBS). TLE 2026-1 is the inaugural securitization from The Learning Experience Corp. (TLE, the Manager or the Company), in which the Company will contribute substantially all of its revenue-generating assets to the Issuer as collateral for the offered notes. The Issuer can offer subsequent series of notes if certain requirements in the transaction documents are met. The collateral includes existing and future domestic and international franchise assets, including franchise and development agreements, franchise royalties and fees, company-owned school synthetic royalties, curriculum and other licensing fees, and securitization intellectual property, including curriculum fees. The proceeds from the offered notes will be used to refinance existing corporate debt, pay transaction expenses and for general corporate purposes.

KBRA assigns preliminary ratings to four classes of notes issued by Upgrade Master Pass-Thru Trust, Series 2026-ST5 (“UMPT 2026-ST5”), a consumer loan ABS transaction. UMPT 2026-ST5 has initial hard credit enhancement levels ranging from 45.10% for the Class A Notes to 22.10% for the Class D Notes. Credit enhancement consists of overcollateralization, subordination of the junior note classes, except for the Class D Notes, a cash reserve account, and excess spread.

KBRA assigns preliminary ratings to 44 classes of mortgage-backed notes from PMT Loan Trust 2026-CNF9 (PMTLT 2026-CNF9), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-CNF9 comprises 676 agency-eligible, conforming mortgage loans on owner-occupied homes with an aggregate stated principal balance of approximately $357.9 million as of the October 1, 2026 cut-off date. The underlying collateral consists of fully amortizing, mostly 30-year fixed-rate mortgages originated under the general QM designation. The pool is characterized by a weighted average (WA) original loan-to-value (LTV) of 73.8%, a WA original combined LTV (CLTV) of 74.0% and a WA original credit score of 779.

KBRA releases a recap of its AI Credit: Data Centers in Focus—Credit Considerations Across Asset Classes webinar held on October 1. The event was co-hosted with Yulchon, a leading Korean law firm, and featured a number of KBRA experts from Corporate, Project and Infrastructure Finance, Structured Finance and APAC Ratings. The speakers examined how artificial intelligence (AI)-driven demand is reshaping data center and GPU credit across project finance, commercial mortgage-backed securities (CMBS), and asset-backed securities (ABS).

KBRA is pleased to announce the assignment of preliminary ratings to 13 classes of BBCMS 2026-5C43, a $989.5 million CMBS conduit transaction collateralized by 43 commercial mortgage loans secured by 98 properties. The collateral properties are located throughout 26 MSAs, of which the three largest are New York (10.7% of pool balance), San Jose (9.9%), and Austin (9.6%). The pool’s three largest property type exposures are retail (22.5%), industrial (19.5%), and lodging (17.0%). The largest loan in the pool, The Assembly (9.9%), is a 491,458 sf industrial and R&D property located in San Jose, California, approximately eight miles northwest of the city’s CBD. The five largest loans, which also include Clackamas Town Center (9.8%), 111 Congress (8.1%), Hilton Beachfront Resort & Spa Hilton Head Island (5.6%), and GBP Industrial Portfolio (5.1%), represent 38.3% of the initial pool balance, while the top 10 loans represent 55.8%.

KBRA assigns a rating of BBB- with a Stable Outlook to the $100 million senior unsecured notes issued by South Street Securities Funding, LLC (“SSSF”) with a final maturity date of October 15, 2031. The purpose of the issuance is to refinance existing senior unsecured debt of $87.5 million that was scheduled to mature on December 30, 2026, and for general corporate purposes. SSSF is an intermediate holding company with its significant asset representing a common equity investment in its wholly owned unit, South Street Securities, LLC (“SSS”), a SEC-registered broker-dealer, member of FINRA, and a netting member with the FICC. SSSF is controlled by ultimate parent company South Street Securities Holdings Inc. (“SSSH”). SSS specializes in collateralized finance with business activities consisting of traditional fixed income repo, residential interest rate risk management activities (TBA finance), algorithmic trading of U.S. Treasury securities, and proprietary investment and trading activity, generally on a secured basis with collateral consisting of U.S. Treasury securities.

KBRA assigns a long-term rating of AAA with a Stable Outlook to the Las Vegas Valley Water District, Nevada (the District) General Obligation (Limited Tax) (Additionally Secured by SNWA Pledged Revenues) Water Improvement Bonds, Series 2026C, and General Obligation (Limited Tax) (Additionally Secured by Pledged Revenues) Water Refunding Bonds, Series 2026D. Concurrently, KBRA assigns the AAA rating and Stable Outlook to the District's outstanding parity limited tax general obligation debt.

KBRA releases its latest 12 Things in Credit report, highlighting timely credit market themes drawn from our weekly podcast, 3 Things in Credit, hosted by KBRA’s Chief Market Strategist, Van Hesser. Among the wide-ranging topics Van discusses in this issue are the recovery in oil exports, the effects of real rates approaching 3%, and the signal to credit markets of the underreported correction in equities’ multiples

KBRA announces the assignment of preliminary ratings to six classes of EQUS 2026-PHNX, a CMBS single-borrower securitization. The collateral for the transaction is a $527.1 million floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower's fee simple interests in 31 industrial assets, which collectively total 3.7 million sf. The portfolio is primarily comprised of warehouse (27 properties, 78.2%) and distribution facilities (3, 10.5%). The properties are all located in the Phoenix MSA, spread across eight cities, the five largest of which are Phoenix (17 properties, 54.5%), Peoria (two, 13.8%), Chandler (four, 7.8%), Gilbert (three, 7.1%), and Tempe (four, 5.9%). As of October 2026, the portfolio was 91.2% leased to a granular roster of approximately 797 unique tenants.

KBRA assigns a long-term rating of AA+ with a Stable Outlook to the following City of New York General Obligation Bonds (the Bonds):

KBRA assigns a long-term rating of AA to the Metropolitan Transportation Authority, NY Transportation Revenue Refunding Green Bonds, Series 2026A (Climate Bond Certified). Concurrently, the long-term rating of AA is affirmed on outstanding Transportation Revenue Bonds. The Outlook is Stable.

KBRA is pleased to announce the assignment of preliminary ratings to eight classes of GSTAR 2026-FL1, a managed CRE CLO securitization with the ability to reinvest principal proceeds for 30 months.

KBRA assigns a rating of BBB to Bain Capital Private Credit's ("BCPC" or "the company") $350 million, 7.60% senior unsecured notes due 2031. The rating Outlook is Stable. The proceeds will be used for general corporate purposes and to repay secured debt.

KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM10 (NRMLT 2026-NQM10), a $494.0 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (56.6%). In addition, all loans will be serviced by Shellpoint Mortgage Servicing, a brand and affiliate of NewRez LLC.

KBRA assigns preliminary ratings to eight classes of notes issued by SCF Equipment Leasing 2026-1 LLC and SCF Equipment Leasing Canada 2026-1 Limited Partnership (collectively SCF 2026-1), an equipment ABS transaction.

KBRA assigns preliminary ratings to four classes of notes issued by Stream Innovations 2026-2 Issuer Trust (“STRE 2026-2”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements. The ratings reflect the initial credit enhancement levels ranging from 25.85% for the Class A notes to 7.45% for the Class D notes. Credit enhancement on the notes is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account funded at closing, and excess spread.

KBRA assigns preliminary ratings to five classes of notes issued by Flagship Auto Securitization Trust 2026-1 (“FAST 2026-1”), an auto loan ABS transaction. FAST 2026-1 represents the first term ABS securitization in 2026 sponsored by FFG Funding LLC, a wholly owned subsidiary of Flagship Financial Group LLC (“Flagship” or the “Company”).

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the September 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased 9 basis points (bps) to 7.7% in September from 7.6% in August, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 4 bps.

KBRA releases research discussing the mismatch between declining traditional public school enrollment and the number of schools that districts continue to operate.

KBRA assigns preliminary ratings to 16 classes of notes issued by Research-Driven Pagaya Motor Asset Trust 2026-5 and Research-Driven Pagaya Motor Trust 2026-5 (collectively “RPM 2026-5”), an auto loan ABS transaction. RPM 2026-5 has initial credit enhancement levels of 94.54% for the Class A-1 notes to 5.19% for the Class XS notes. Credit enhancement is comprised of overcollateralization (“O/C”), subordination of junior note classes (except for the Class E-2 notes and XS notes), reserve accounts (including the capitalized interest amount and the Class XS Reserve Account) funded at closing, and excess spread.

KBRA assigns preliminary ratings to eight classes of mortgage-backed notes from BRAVO Residential Funding Trust 2026-CES2 (BRAVO 2026-CES2), a $415.1 million RMBS transaction, sponsored by Loan Funding Structure LLC, an affiliate of PIMCO. BRAVO 2026-CES2 consists entirely of closed-end second lien mortgages (CES; 100.0%) and is seasoned approximately five months. The underlying pool comprises of 4,454 loans originated primarily by Rocket Mortgage, LLC (56.9%) and PennyMac Loan Services, LLC (20.3%).

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to San Antonio, Texas-based VBT Financial Corporation, Inc ("VBT" or "the company"). In addition, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to its main subsidiary, Vantage Bank Texas ("Vantage" or "the bank"). The Outlook for all long-term ratings is Stable.

KBRA assigns preliminary ratings to five classes of notes issued by Upstart Securitization Trust 2026-4 (“UPST 2026-4”), a $400.0 million consumer loan ABS securitization collateralized by unsecured consumer loans and auto secured personal loans. UPST 2026-4 represents the 52nd ABS securitization collateralized by loans originated through the online platform operated by Upstart Network, Inc. (“Upstart” or the “Company”), a 100% owned subsidiary of the publicly traded entity Upstart Holdings, Inc. (NASDAQ: UPST).

KBRA assigns preliminary ratings to 12 classes of mortgage-backed notes from OBX 2026-NQM15 Trust, a $758.7 million non-prime RMBS transaction. The underlying collateral, comprising 1,437 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 93.6% and 6.4% of the pool, respectively. All of the loans are either classified as non-qualified mortgages (Non-QM; 45.7%) or exempt (54.3%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes. There were no originators comprising over 10% of the pool.

KBRA assigns a long-term rating of AA+ to the Delta Diablo, CA Series 2026 Wastewater Revenue Certificates of Participation. The rating Outlook is Stable.

KBRA releases an updated report tracking key metrics within the recurring revenue loan (RRL) securitization portfolio.

KBRA assigns a long-term rating of AAA to the San Diego Unified School District (San Diego County, California): 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2008, Series Q-1) (Federally Taxable); 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2008, Series Q-2); 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2018, Series J-1) (Federally Taxable); 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2018, Series J-2); 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2022, Series D-1) (Federally Taxable); and, 2026 General Obligation Bonds (Dedicated Unlimited Ad Valorem Property Tax Bonds) (Election of 2022, Series D-2). KBRA additionally affirms the long-term rating of AAA for the District's outstanding General Obligation Bonds.

KBRA assigns preliminary ratings to 65 classes of mortgage pass-through notes from OBX 2026-INV6 Trust, a prime RMBS transaction secured by second homes (37.6%) and investment properties (62.4%), collectively, non-owner occupied or “NOO” properties. The underlying collateral consists of 910 agency eligible, fixed-rate mortgages (FRMs) with an aggregate unpaid principal balance (UPB) of approximately $356.4 million as of the September 1, 2026 cut-off date. Movement Mortgage, LLC (13.3%) is the only originator comprising over 10% of the pool.

KBRA releases a report examining the credit considerations associated with fuel cells as a behind-the-meter power solution for data centers. The report discusses the potential benefits of fuel cell systems, including modular deployment, continuous on-site generation, and potentially faster installation relative to major grid upgrades, while focusing on the risks relevant to project finance transactions.

KBRA assigns preliminary ratings to six classes of notes issued by First Investors Auto Owner Trust 2026-2 (“FIAOT 2026-2”), an asset-backed securitization collateralized by a pool of auto loans. FIAOT 2026-2 represents the second term ABS securitization in 2026 for Stellantis Financial Services, Inc. d/b/a First Investors Financial Services (“SFS” or the “Company”) and the sixth since the Company's acquisition by Stellantis N.V. in 2021.

KBRA assigns a long-term rating of AA+ to the State of Connecticut: General Obligation Bonds (2026 Series C); General Obligation Refunding Bonds (2026 Series D); General Obligation Refunding Bonds (2026 Series E) (Forward Delivery); and, Taxable General Obligation Bonds (2026 Series B). KBRA additionally affirms the long-term rating of AA+ for the State's outstanding General Obligation Bonds. The rating Outlook is Stable.

KBRA assigns preliminary ratings to ten classes of mortgage pass-through certificates from CROSS 2026-NQM11 Mortgage Trust, an RMBS transaction issued under the CROSS shelf that is managed by CrossCountry Capital, LLC (“CCC”). CROSS 2026-NQM11 is a co-sponsored transaction with CCC and APF II RESI O4B, LLC. This $735.3 million transaction is collateralized by a pool of 1,481 residential mortgages, including a meaningful concentration of collateral that KBRA considers to be “non-prime” (77.5%), with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 87.9% and 12.1% of the pool, respectively. Most loans are either classified as non-qualified mortgages (Non-QM; 59.1%) or exempt (39.6%) from the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule due to being originated for non-consumer loan purposes.

KBRA assigns preliminary ratings to 7 classes of mortgage-backed notes from GCAT 2026-CES1 Trust.

KBRA assigns preliminary ratings to three classes of notes issued by PowerPay Issuance Trust 2026-1 (“PowerPay 2026-1”), an asset-backed securitization collateralized by a pool of consumer loans used for home improvements and health and wellness procedures. This transaction represents PowerPay’s third 144A ABS securitization.

KBRA assigns a long-term rating of AA- to the Sales Tax Securitization Corporation ("STSC" or the "Corporation") Third Lien Sales Tax Securitization Bonds, Refunding Series 2026A. Concurrently, KBRA assigns a long-term rating of AAA to STSC's Senior Lien Sales Tax Securitization Bonds, Taxable Refunding Series 2026, affirms the AAA rating on outstanding Senior Lien Sales Tax Securitization Bonds, and affirms the AA+ rating on outstanding Second Lien Sales Tax Securitization Bonds. The Outlook on all obligations is Stable.

KBRA announces the assignment of preliminary ratings to four classes of SMRT 2026-MINI, a CMBS single-borrower securitization. The collateral for the transaction is a $2.125 billion floating rate, interest-only mortgage loan. The loan is expected to have a two-year initial term with three, 12-month extension options and will require monthly interest-only payments based on one-month Term SOFR plus an assumed spread of 2.30%. The loan will be secured by the borrower’s fee simple interests in 16 primarily self-storage properties totaling approximately 2.2 million sf, including 293,321 sf of commercial and miscellaneous space. The properties are located across 10 Manhattan neighborhoods, the three largest of which are Chelsea (16.8% of ALA), SoHo (15.6%), and Harlem (12.6%). As of June 2026, the portfolio's self-storage component was 85.6% leased, and the total portfolio occupancy was 86.8% leased.

KBRA assigns preliminary ratings to 13 classes of notes issued by Pagaya AI Debt Grantor Trust 2026-6 and Pagaya AI Debt Trust 2026-6, collectively “PAID 2026-6,” an unsecured consumer loan ABS transaction. PAID 2026-6 has initial hard credit enhancement levels ranging from 80.57% for the Class A-1 Notes to 3.72% for the Class F-2 Notes. Credit enhancement is comprised of overcollateralization, subordination, except for the Class F-2 Notes, cash reserve accounts funded at closing, and excess spread.

KBRA assigns preliminary ratings to 11 classes of mortgage-backed notes from BINOM 2026-NQM2 Trust, an RMBS transaction issued by SLC BINOM Sponsor LLC as seller/sponsor which includes a meaningful concentration of collateral that KBRA considers to be “non-prime.” The $328.8 million RMBS transaction is collateralized by a pool of 683 residential mortgages, with fixed-rate mortgages (FRMs) and hybrid adjustable-rate mortgages (ARMs) making up 98.4% and 1.6% of the pool, respectively.

KBRA assigns preliminary ratings to 69 classes of mortgage-backed notes from PMT Loan Trust 2026-INV9 (PMTLT 2026-INV9), a prime RMBS transaction sponsored by PennyMac Corp. (PennyMac), an indirect, wholly-owned subsidiary of PennyMac Mortgage Investment Trust (PMT). PMTLT 2026-INV9 comprises 1,116 fixed-rate mortgages (FRMs) with an aggregate principal balance of $398.1 million as of the September 1, 2026 cut-off date. The underlying pool consists of agency-eligible loans that are collateralized by investment properties (75.1%) and second homes (24.9%). The pool is characterized by significant borrower equity in each mortgaged property, as evidenced by the WA original LTV of 75.8%. The weighted average original credit score is 776, which is well within the prime mortgage range.

KBRA releases research on sovereign yield curve dynamics of the U.S. and several peer sovereigns, including Japan, the UK, and euro area countries. With the recent notable U.S. yield curve developments as a key backdrop, the report examines what shifts in major sovereign yield curves reveal about monetary policy, debt management, and sovereign credit risk.

KBRA assigns a rating of A- with a Stable Outlook to the $250 million subordinated notes issued by Columbia Bank ("the bank") with a final maturity date of September 18, 2036. The notes are callable at the option of the bank, commencing on September 18, 2031. Net proceeds will be used for general corporate purposes and to retire trust preferred securities outstanding at its holding company, Columbia Banking System, Inc. (NASDAQ: COLB).

KBRA releases research examining buy now, pay later (BNPL) asset-backed securities (ABS).

KBRA releases research examining the expansion of direct lending in the European Union (EU) and United Kingdom (UK) middle market (MM) and how the market compares to its more established U.S. counterpart.

KBRA assigns a long-term rating of AA to the Department of Water and Power of the City of Los Angeles, CA ("LADWP") Power System Revenue Bonds, 2026 Series C. The Outlook is Stable.

KBRA releases research examining the credit implications of the meaningful shift in property-catastrophe reinsurance pricing and terms in favor of property and casualty (P&C) insurers. Abundant traditional and alternative capital, strong reinsurer balance sheets, and increased competition have contributed to declining pricing and improved terms through the 2026 renewal season, after several years of rising reinsurance costs, constrained capacity, and higher attachment points.

KBRA assigns a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB, and a short-term debt rating of K2 to Muncie, Indiana-based First Merchants Corporation (“FRME” or “the company”). In addition, KBRA assigns deposit and senior unsecured debt ratings of A-, a subordinated debt rating of BBB+, and short-term deposit and debt ratings of K2 to its main subsidiary, First Merchants Bank (“the bank”). The Outlook for all long-term ratings is Stable.

KBRA assigns preliminary ratings to six classes of notes issued by Wingspire Equipment Finance 2026-1 LLC (WEF 2026-1), an equipment ABS transaction.

KBRA assigns preliminary ratings to three classes of notes issued by GoodLeap Home Improvement Solutions Trust 2026-2 (“GDLP 2026-2”), a $389.03 million asset-backed securitization collateralized by a pool of residential home improvement loans originated by GoodLeap, LLC ("GoodLeap" or the "Company"). The preliminary ratings reflect the initial credit enhancement levels ranging from 21.37% for the Class A notes to 6.12% for the Class C notes as a percentage of 95% of the pool balance.

KBRA announces the assignment of preliminary ratings to two classes of BX 2026-SUMT, a CMBS single-borrower securitization. The collateral for the transaction is a $1.71 billion floating rate, interest-only mortgage loan. The loan is expected to have an initial two-year term with three, one-year extension options and require monthly interest-only payments. The loan will be secured by the borrower's fee simple interests in 75 (98.8% of ALA) assets, and the borrower’s leasehold interest in one (1.2%) asset, which collectively total 19.0 million sf. The portfolio is primarily comprised of industrial properties, which include bulk warehouse (21 properties, 54.4%), warehouse (30, 34.3%), and light industrial (23, 10.7%). The portfolio also includes two land (0.6%) assets. The properties are located in 18 states, the five largest of which are Georgia (six properties, 11.2%), Minnesota (15, 10.2%), Pennsylvania (one, 9.1%), Texas (six, 8.5%), and Tennessee (five, 8.4%). As of September 2026, the portfolio was 96.1% leased to 115 unique tenants.

KBRA releases research examining the strengthening credit profile of U.S. senior housing real estate investment trusts (REIT), which are benefiting from a favorable combination of accelerating demographic demand, constrained new supply, and strong capital markets access.

AS Air Baltic Corporation (airBaltic) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on September 14, 2026, as part of a financial restructuring aimed at reducing debt and strengthening its liquidity position. airBaltic is the flag carrier of Latvia and was founded in 1995.

KBRA assigns preliminary ratings to Mathnasium Funding LLC (the Issuer), Series 2026-1 (Mathnasium 2026-1 or Series 2026-1) Class A-1-LR, Revolving Class A-1 VFN, Growth Class A-1 VFN and Class A-2 Notes, a whole business securitization (WBS). The transaction represents the Issuer’s inaugural securitization in which Mathnasium Center Licensing, LLC (Mathnasium, the Manager, or the Company) has contributed substantially all of its revenue-generating assets to the securitization as collateral for the offered notes. The collateral includes existing and future franchise agreements and associated royalties and fees, development agreements under the brand, company-owned royalties, other fees (including tech fees, initial franchise fees, and transfer fees), intellectual property, transaction accounts, and pledge of the equity interests in the Issuer, and other securitization entities. The proceeds from the offered notes will be used to refinance existing debt, pay transaction expenses, and for general corporate purposes.

KBRA assigns a senior unsecured debt rating of BBB, a subordinated debt rating of BBB-, and a short-term debt rating of K3 to Needham, Massachusetts-based NB Bancorp, Inc. (NYSE: NBBK) (“the company”). KBRA also assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 to the company's primary subsidiary, Needham Bank ("the bank"). The Outlook for all long-term ratings is Stable.